Spot Gold and Silver Prices
Spot gold and silver prices are currently on a winning streak, with gold even at a month’s high as emerging market economies such as India and China adding to the physical buying strength. In the latest trading session, spot gold prices were 0.63 per cent higher at $1642.70 per ounce, while spot silver prices were at $30.09 per ounce up nearly 4 per cent from its last close.
Although the silver metal has made a good recovery from its December lows, it is still facing some resistance at $30.71.
Price on the Rise
Daily gold and silver spot prices are on the rise because investors are treating the precious metals as a safe haven as concerns over the debt crisis in the Euro zone seems far from gone. All eyes are now on the crucial meeting of the ECB and the bond auctions by Italy and Spain. The central bank is supposed to deliver an important policy decision and let investors know of its interest rate decision for the year ahead. Though an interest rate cut cannot be expected, trader are hopeful that indication of a rate cut in the near future may further be a boost for spot prices for gold and silver.
While silver and gold spot prices today remained in the green, there is some enthusiasm especially on silver. Over the last year the white metal has had quite a journey having shot up steeply, fallen just as badly and recovered just to the same levels where it shot up from. But this is exactly the reason why silver may have more of an upside that it’s richer cousin the yellow metal this year.
Silver vs Gold
Live spot gold and silver prices show that spot silver has bounced back nearly 4 per cent in the new year while spot gold prices has moved up just under 2 per cent. Judging by the current gold and silver spot prices, it can be said that silver may offer a little more a bounce in the year ahead as compared to gold. International commodities analysts tracking spot gold and silver prices out of UK and US are of the opinion that silver has as much as a 9 per cent upside from its current levels if it manages to breach the resistance level it faces at $ 30.71.
But that does not mean that gold is much far behind. With the Chinese new year approaching on January 23rd, that marks a week of national holidays in China, the physical demand for gold is expected to surge quite a bit as people go all out to buy gold jewelery as well as gold coins. Although there is a fear of a slowdown looming large over China, the demand for gold is expected to be pretty robust even at this stage. With the demand in gold still going good and silver prices inching up on the back of low interest rates in the Eurozone, it looks like spot gold and silver prices will remain in the green at least in the near future.